CBSE Class 12 Business Studies Practice Paper with Solution for Board Exam 2024 for All Subject, Download PDF

                                                               SAMPLE QUESTION PAPER 2023-24

                                                                         BUSINESS STUDIES (054)

                                                                                          CLASS XII

Max Marks – 80                                                                                                                        Time allowed: 3 Hours

General instructions:

1. This question paper contains 34 questions.

2. Marks are indicated against each question.

3. Answers should be brief and to the point.

4. Answers to the questions carrying 3 marks may be from 50 to 75 words.

5. Answers to the questions carrying 4 marks may be about 150 words.

6. Answers to the questions carrying 6 marks may be about 200 words.

7. Attempt all parts of the questions together.

1

The Board of directors of Medex Pharma Ltd. decided to issue debentures worth ₹40 lakhs in order to finance a major Research and Development project. This would increase the Debt Equity ratio from 1:1 to 2:1.However, at the same time it would increase the Earnings per share.

The reason that will justify the above situation is:

a) Unfavourable financial leverage, as the financial risk will be higher.

b) Unfavourable financial leverage, as return on investment is lower than the cost of debt.

c) Favourable financial leverage as debt is easily available

d) Favourable financial leverage, as return on investment is higher than cost of debt

1

2

Which characteristic of the business environment is highlighted when changes are taking place too frequently and it becomes difficult to predict the future?

a) Uncertainty

b) Complexity

c) Inter-relatedness

d)Relativity

1

3

Which scenario BEST illustrates the impact of rapidly changing technology on businesses?

a) A software company is disrupted by a new entrant that offers a more user-friendly interface and a lower price point.

b) A manufacturing company is forced to automate its production line in order to compete with lower-cost overseas competitors.

c) A traditional brick-and-mortar retailer is forced to close its doors after online retailers offer lower prices and a wider selection of products.

d) A financial services company is forced to invest in new technology in order to meet the demands of its customers for online and mobile banking services.

1

4

Identify the step performed by Ajit Nene in the process of controlling.

a) measurement of performance

b) analysing deviations

c) setting performance standards

d) taking corrective action.

1

5

Name the function of marketing which is effective in bringing repeat sales from the customers and developing brand loyalty for a product

a) Standardization and grading

b) Promotion

c) Customer support services

d) Packaging and labelling

1

6

Identify the reason which makes management important in the light of the fact that it is generally seen that individuals in an organization resist change, as a change often means moving from a familiar, secure environment into a newer and a more challenging one.

a) Management helps in achieving group goals.

b) Management creates a dynamic organization

c) Management increases efficiency

d) Management helps in the development of society.

1

7

Which of the following statements accurately represents one of the protective functions of SEBI in real-life scenarios?

(a) It is responsible for managing government budgets and allocating funds for various developmental projects.

(b) It ensures the safety and security of data transmitted during online trading transactions. (c) It promotes and regulates the insurance industry to safeguard policyholders' interests. (d) It monitors and regulates the securities market to protect investors and maintain market integrity.

1

8

Name the function of management that completes one cycle of Management process and improves planning in the next cycle

a) Staffing

b) Directing

c) Organising

d)Controlling

1

9

The allocative function of Financial market helps in ________

a) Bringing transparency in trading procedure

b) Earning higher rate of return to household sector

c) Better functioning of depository

d) Determining the prices of securities

1

10

Radha started a home cooked food delivery Dabba service. Her mother, who is a great cook, decided to help her. They relied on friends and family for orders and then on word of mouth. As a step in the process of ensuring that activities are performed as per her plan of supplying healthy, good quality, reasonable food and earning profit, she decided to keep both qualitative and quantitative benchmarks towards which she would strive to work. A function of management is being discussed above. An important characteristic of this function of management is:

a) It is the first function of management

b) It is the Last function of management

c) It is both forward looking and backward looking.

d) It is required only in business organizations.

1

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